Is property tax in Canada deductible on your US 1040 Schedule A
QUESTION:
Can I claim a deduction of my property tax in Canada in my US tax? I live
and own a house in Canada but work in the US.
david ingram replies:
Well, you should likely have me do your tax returns.
But, your Canadian property tax and mortgage interest (if any) are both
deductible on schedule A of your US 1040.
However, it will not do you a lot of good because reducing your US tax just
increases your Canadian income tax since that amount is not available to use
as part of your foreign tax credit.
What you do need to do is make your Canadian mortgage interest deductible
on your Canadian return. You can find out more about making the Canadian
interest deductible on your Canadian return by reading the Nov 2001
newsletter at www.centa.com (top left box)
Can I claim a deduction of my property tax in Canada in my US tax? I live
and own a house in Canada but work in the US.
david ingram replies:
Well, you should likely have me do your tax returns.
But, your Canadian property tax and mortgage interest (if any) are both
deductible on schedule A of your US 1040.
However, it will not do you a lot of good because reducing your US tax just
increases your Canadian income tax since that amount is not available to use
as part of your foreign tax credit.
What you do need to do is make your Canadian mortgage interest deductible
on your Canadian return. You can find out more about making the Canadian
interest deductible on your Canadian return by reading the Nov 2001
newsletter at www.centa.com (top left box)
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